China's outbound investment increased 14 percent in 2012, with Europe being the top destination for Chinese investment, an industry report stated April 16.

Outbound investments by Chinese companies rose to US$77.2 billion last year from US$68 billion in 2011, with M&A taking up 49 percent of the total, a 44-percent gain from 2011.

It was anticipated that Chinese investors will invest US$600 billion more in overseas markets in the next three years.

In 2012, Europe attracted the most investment of US$12.6 billion from China, up 21 percent from 2011, more than doubled the US$5.4-billion investments to the United States.

Investments into Europe are expected to remain strong due to low valuations on weak growth prospects, the absence of regulatory hurdles, and the strategic match between sectors of interest for Chinese investors and the European economy, in particular in sectors linked with urbanization.

However,Chinese investments in Asia fell, with M&As down 65 percent.